New Delhi, Apr 16 (PTI) IT major Wipro on Thursday announced a share buyback programme worth Rs 15,000 crore, its largest repurchase offer to date, surpassing its Rs 12,000 crore repurchase carried out in 2023, but lags behind its competitors' similar offers in recent times.
Infosys had concluded its biggest-ever buyback of Rs 18,000 crore in November last year, while Tata Consultancy Services (TCS) completed a Rs 17,000-crore share repurchase in December 2023.
The record Rs 18,000-crore share buyback was the largest ever by any Indian company so far.
Share buybacks are typically undertaken by companies to return surplus cash to shareholders, improve earnings per share, and signal confidence in their financial health.
In a regulatory filing, Wipro said its board has approved a proposal to buy back shares at Rs 250 apiece through the tender offer route.
This also marks the company's first share buyback in nearly three years.
"The Board of Directors approved the buyback proposal, subject to shareholders' approval through postal ballot, for purchase of up to 60 crore equity shares of Rs 2 each (5.7 per cent of total paid-up equity share capital) on a proportionate basis via tender offer at Rs 250 (USD 2.661) per equity share, for an aggregate amount not exceeding Rs 150 billion (USD 1.6 billion)," the company said.
The buyback price of Rs 250 per share represents a premium of about 19 per cent over Thursday's closing price of Rs 210.20 on the BSE.
Wipro Chief Financial Officer Aparna Iyer, in an earnings call, said that the buyback is expected to be completed in Q1 2027, subject to shareholder approval.
Separately, the Cyient board is scheduled to meet on April 23 to consider a share buyback proposal.